p 149 The face value of a Series EE U S Savings Bond refers to the A original

# P 149 the face value of a series ee u s savings bond

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83.(p. 149)The face valueof a Series EE U. S. Savings Bond refers to the: A. original purchase priceB.redemption value at maturityC. effective yield of the bondD. monthly interest accrual amountE. taxable portion of the accrued interestBloom's: ComprehensionDifficulty: MediumLearning Objective: 05-03 Compare the Costs and Benefits of Various Savings PlansTopic: U.S. Savings Bonds/face value 84.(p. 150)Determine the rate of return (yield) on a savings account in which you deposited \$300.00 and earned \$6.00 in interest after one year. 2% = \$6/\$300Bloom's: ApplicationDifficulty: MediumLearning Objective: 05-03 Compare the Costs and Benefits of Various Savings PlansTopic: Computing Yield 5-28
Chapter 05 - Financial Services: Savings Plans and Payment AccountsEssay Questions 85.(p. 141)What are the main types of financial institutions used by consumers? 86.(p. 154)Evan Nolan is a college graduate who has just landed a great job. He feels it is time for him to start saving a portion of his earnings. What factors would you recommend he consider when evaluating and comparing different savings plans?
87.(p. 160)Brad Kellogg maintains a monthly balance in his checking account of approximately\$150, writes about 25 checks a month, and makes three deposits each month. How would Brad decide which one of the following checking accounts he should use? Bank A: regular checking account with a monthly fee of \$4.50 for an unlimited number of checks, no monthly balance requirement, and no interest earningsBank B: interest-bearing checking account paying 4 percent interest on balances over \$300 and a monthly service charge of \$6 if the balance falls below \$300Bank C: special checking account that charges 35 cents a check and 20 cents for each deposit, no interest earningsBank D: minimum-balance account that requires a \$200 minimum balance to avoid the \$10 monthly fee, two percent interest paid if the balance remains above \$400.Feedback: Brad should compare the expected monthly cost for each situation (service charges,costs per check, and other fees) with any interest earnings. In addition to the financial aspects of each account, he should also consider the convenience, location, and other services offered by the financial institution.

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